The circuit breaker rule stipulates that the Exchange shall halt trading in all stocks if a 5% move is recorded in the All Share Index (ASI) between 10:15a.m. and 13:45p.m on a trading day.
The Nigerian Stock Exchange (NSE) has halted trading at the market as losses at the Nigerian stock market top N1.5 trillion in the past nine days, reports WazobiaReporters.
To achieve this, it activated the market’s circuit-breaker rule, which allows the market regulator to intervene and halt trading when market declines to a certain point.
According to WazobiaReporters, traders on the floor of the NSE confirmed that the circuit breaker has been activated and may be applied if the market falls by 5.0 per cent by 1.45 pm. As at 1.30pm, the market was already down by more than 3.0 per cent.
The circuit breaker rule, known as “Article 170: Trading Halts Due To Extraordinary Market Volatility (Index Circuit Breaker Rule)” was earlier instituted by the NSE but its implementation was deferred.
A notice by the NSE indicated that the circuit breaker rule becomes effective yesterday, January 15, 2016.
The circuit breaker rule stipulates that the Exchange shall halt trading in all stocks and shall not reopen for the time period specified if a 5% move is recorded in the All Share Index (ASI) between 10:15a.m. and 13:45p.m on a trading day as compared with the closing value of the ASI for the immediately preceding trading day.
The Nigerian stock market has lost N1.515 trillion in the past nine trading days and there are indications that the market might close negative again today. The stock market closes by 2.30 pm.
Aggregate market value of all quoted equities closed Thursday at N8.336 trillion as against N9.851 trillion recorded as opening value for the year.
The All Share Index (ASI), which opened the year at 28,642.25 points, has dropped to 24,239.98 points by the opening of the market today.
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